Dutch Bros (NYSE:BROS) Given New $69.00 Price Target at Citigroup

Key Points

• Citigroup lowered Dutch Bros’ price target to $69 from $86 but maintained a “buy” rating, implying roughly 64% upside from the stock’s $42.12 price.
• Analyst sentiment remains broadly positive: Dutch Bros has a “Moderate Buy” consensus rating and an average price target of $69.20, despite several firms recently reducing their targets.
• The company recently exceeded quarterly earnings and revenue expectations, with revenue rising 32.5% year over year; however, shares remain well below their 52-week high and trade at a relatively elevated P/E ratio of 58.5.

Dutch Bros (NYSE:BROS - Get Free Report) had its price objective lowered by equities research analysts at Citigroup from $86.00 to $69.00 in a report released on Wednesday, Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price target would suggest a potential upside of 63.84% from the stock's current price.

BROS has been the topic of several other research reports. UBS Group restated a "neutral" rating on shares of Dutch Bros in a research report on Thursday, September 10th. Weiss Ratings upgraded Dutch Bros from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 8th. DA Davidson reduced their price objective on Dutch Bros from $85.00 to $60.00 and set a "buy" rating for the company in a research note on Monday, September 28th. JPMorgan Chase & Co. reduced their price objective on Dutch Bros from $75.00 to $60.00 and set an "overweight" rating for the company in a research note on Tuesday, September 29th. Finally, Jefferies Financial Group decreased their price objective on Dutch Bros from $75.00 to $60.00 and set an "overweight" rating on the stock in a report on Tuesday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $69.20.

Dutch Bros Price Performance

Shares of BROS stock traded down $1.71 on Wednesday, reaching $42.12. 2,450,081 shares of the company were exchanged, compared to its average volume of 4,292,854. The company has a market cap of $7.36 billion, a price-to-earnings ratio of 58.50, a P/E/G ratio of 1.52 and a beta of 2.31. The business has a 50-day moving average price of $43.74 and a 200 day moving average price of $54.13. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.19 and a current ratio of 1.35. Dutch Bros has a 1 year low of $36.51 and a 1 year high of $74.02.

Dutch Bros (NYSE:BROS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.33 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.04. Dutch Bros had a net margin of 4.91% and a return on equity of 10.01%. The firm had revenue of $550.85 million for the quarter, compared to analyst estimates of $525.38 million. During the same period last year, the company posted $0.26 EPS. Dutch Bros's quarterly revenue was up 32.5% compared to the same quarter last year. Equities research analysts forecast that Dutch Bros will post 0.88 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Dutch Bros news, Director Todd Penegor bought 2,000 shares of the firm's stock in a transaction on Thursday, August 13th. The shares were acquired at an average cost of $51.56 per share, with a total value of $103,120.00. Following the purchase, the director directly owned 7,358 shares of the company's stock, valued at $379,378.48. This trade represents a 37.33% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. 38.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Dutch Bros

A number of large investors have recently made changes to their positions in the stock. Ancora Advisors LLC acquired a new stake in Dutch Bros during the second quarter worth $29,000. Brown Lisle Cummings Inc. lifted its stake in shares of Dutch Bros by 63.8% in the 1st quarter. Brown Lisle Cummings Inc. now owns 819 shares of the company's stock valued at $41,000 after purchasing an additional 319 shares during the last quarter. GK Wealth Management LLC acquired a new position in shares of Dutch Bros in the 3rd quarter valued at $56,000. Archer Investment Corp acquired a new position in shares of Dutch Bros in the 2nd quarter valued at $101,000. Finally, Harbor Investment Advisory LLC grew its holdings in shares of Dutch Bros by 77.1% during the 2nd quarter. Harbor Investment Advisory LLC now owns 2,030 shares of the company's stock worth $146,000 after purchasing an additional 884 shares during the period. 85.54% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Dutch Bros

Here are the key news stories impacting Dutch Bros this week:

• Positive Sentiment: Wells Fargo lowered its price target from $70 to $55 but maintained an “overweight” rating, implying approximately 30.9% upside from the referenced share price. Wells Fargo lowers Dutch Bros price target
• Positive Sentiment: TD Cowen also reduced its target, from $59 to $55, while retaining a “buy” rating and forecasting roughly 30.9% upside. The continued bullish ratings indicate analysts still see long-term value after the recent selloff. TD Cowen lowers Dutch Bros price target
• Positive Sentiment: Dutch Bros continues to report same-store sales growth, with growth extending across 13 consecutive quarters. The company plans to open 185 stores this year, supporting its long-term revenue expansion strategy. Dutch Bros same-store sales and store expansion
• Positive Sentiment: Recent comparisons with Celsius, CAVA and e.l.f. Beauty highlight Dutch Bros’ differentiated drive-thru model, brand culture, customization and potential for double-digit growth. Dutch Bros compared with other growth stocks
• Neutral Sentiment: Coverage ahead of upcoming earnings has renewed focus on whether Dutch Bros can meet its store-opening target and sustain its growth trajectory. Investors may look for additional clarity in the company’s November 4 update. Dutch Bros upcoming earnings
• Negative Sentiment: Both Wells Fargo and TD Cowen cut their price targets by $15, signaling reduced near-term expectations even though they remain positive on the stock. The shares’ roughly 58-times earnings valuation continues to make execution and growth expectations important risks. Dutch Bros valuation analysis

Dutch Bros Company Profile

Dutch Bros Inc is a drive-thru beverage company that operates and franchises coffee shops across the United States. The company is known for its made-to-order drinks, fast service and community-focused brand.

Its menu includes hot, iced and blended coffee beverages, along with specialty drinks such as energy drinks, teas, lemonades, smoothies and other noncoffee refreshments. Dutch Bros also offers packaged products and branded merchandise through select locations and digital channels.

Dutch Bros was founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma.

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